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在线翻译:
szdaily -> Markets -> 
Oil futures signal China near pricing power
    2018-02-27  08:53    Shenzhen Daily

CHINA is scheduled to launch crude oil futures March 26, as the world’s second-largest economy moves to gain pricing power over commodities.

After years of false starts, the crude futures contract will make its debut at the Shanghai International Energy Exchange or INE, the China Securities Regulatory Commission (CSRC), the country’s top securities regulator, announced Feb 9.

Preparations for the launch of the oil futures have almost been completed, Chang Depeng, spokesperson for the CSRC, told a news conference.

China set up a petroleum exchange in the early 1990s but soon ceased trading due to reform and market factors.

The contract will enable China to develop its own benchmark for oil pricing in addition to current global benchmarks.

The Asia-Pacific region has surpassed Americas and Europe in crude consumption, but a benchmark with high recognition is still missing.

China is the world’s second-largest oil consumer after the United States. Demand is likely to soar in the future as the country is thirsty for fuel that can sustain its economic boom.

In the absence of a crude benchmark in the region, Asian countries pay more than Europe and Americas for imported oil. It is an additional US$2 billion a year in the case of China.

The WTI and Brent futures contracts are not accurate reflections of oil prices in Asia. China’s crude contract offers companies in the real economy a hedging tool which better reflects market conditions in Asia, said Wu Jian, a senior researcher with Bank of Communications.

The new move will also boost the yuan’s global use through increasing the trade of yuan-denominated oil. Currently, the main global benchmarks for crude oil are priced in U.S. dollars, threatening China’s energy and economic security.

The yuan-denominated contract means the Chinese currency will play a greater role in trade between China and other oil-producing countries.

But analysts said it could take time before China’s new oil futures challenge the dominance in oil trading of the two current global benchmarks, or the prominence of U.S. dollar in the global financial system.

Bai Ming, a researcher with China’s Ministry of Commerce, said it is natural that competition arises after a long developmental phase, but challenges will not necessarily crop up in the end. (SD-Agencies)

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